Tips for Transformation: Optimizing Business and Executive Effectiveness
A Weekly Publication From the Desk of Bob Moore
The Law of Averages and How to Improve Measurable Results
It has often been said that if you do something often enough, your will get a ratio of results. An understanding of the law of averages can optimize your capacity to achieve measureable business and personal results.
Let’s apply the law of averages to sales. You make ten presentations and get one sale. This is the beginning of establishing your ratio — ask ten; nine say “no” and one says “yes” to your offer. In some situations, that may not be very good. The interesting idea here is that once you get started, the ratio tends to continue. Therefore, if you make ten more presentations, there is a high probability that you will make another sale.
Selling, like many other key activities, is a process. By examining all the elements of the process, it is possible to find a way to improve. Even a slight improvement can increase your law of average ratio. Continue to keep score and you may find the next ten presentation produce two sales. Now your ratio is three sales from twenty presentations or 1.5:10; up from 1:10.
Even if there is no improvement in the process, a 10:1 ratio will produce more results by simply making more presentations. However, by diligently putting in more effort, the ratio will improve over time. With the law of averages, you can develop a simple formula that indicates the cause and result ratio and thereby predict the expected results from any worthwhile activity. Soon, you will discover that the 80/20 rule will influence your results. Basically, this means that over a long enough period of time, 80 percent of your results will come from 20 percent of the actions you take.
Now consider the leverage power of knowing your law of averages (ratios) and applying the 80/20 rule. You will likely discover that you can get multiple results – perhaps twice as much without making twice the effort. Begin today to keep score and put the law of averages to work on whatever key result you want to improve.
Want to accelerate your progress on the journey to professional fulfillment and mastery?
Request the Personal Mastery Checklist by sending an email to [email protected] with “Mastery” in the subject line.
Bob Moore, CMC
Chief Optimizer, Effectiveness, Inc.
Optimizing Capacity to Make a Difference